The automotive industry is undergoing a rapid and unprecedented change, driven by technological innovation, environmental concerns, and shifting consumer preferences. In 2024, we can expect to see some major developments that will reshape the future of mobility and transportation. Here are three key trends to watch in the automotive industry in 2024.
Electric vehicles (EVs) have been gaining popularity and market share in recent years, thanks to their lower emissions, lower maintenance costs, and higher performance. In 2024, EVs will dominate the automotive market, as more automakers launch new models, more governments offer incentives and regulations, and more consumers adopt them.
According to a report by BloombergNEF, EVs will account for 31% of global passenger car sales and 67% of bus sales in 2024. China, the world’s largest EV market, will lead the way, with EVs making up 48% of its passenger car sales and 95% of its bus sales in 2024. Other regions, such as Europe, North America, and India, will also see significant growth in EV adoption.
One of the main drivers of EV growth in 2024 will be the launch of new models, especially in the premium and luxury segments. For instance, Li Auto, a Chinese EV maker, will launch its fully electric Li MEGA in February 2024, which has already received over 10,000 pre-orders. The Li MEGA boasts full-scenario autonomous driving, assisted driving functions, leading active safety system, and an automated parking system. Other EV makers, such as Tesla, Nio, and XPeng, will also introduce new models and features in 2024, catering to different customer segments and needs.
Another driver of EV growth in 2024 will be the support from governments and regulators, who will offer incentives and policies to encourage EV adoption and reduce carbon emissions. For example, the European Union will implement its Green Deal, which aims to achieve net-zero emissions by 2050 and reduce emissions by 55% by 2030. As part of the Green Deal, the EU will impose stricter CO2 standards for cars and vans, ban the sale of new internal combustion engine vehicles by 2035, and expand the charging infrastructure for EVs. Similarly, the US will implement its Build Back Better plan, which includes $555 billion for climate action, $174 billion for EVs, and $65 billion for clean energy transmission. The plan will also raise the tax credit for EV buyers from $7,500 to $12,500, depending on the vehicle type and battery size.
A third driver of EV growth in 2024 will be the changing consumer preferences and behavior, as more people become aware of the environmental and economic benefits of EVs. According to a survey by Deloitte, 41% of global consumers are considering buying an EV as their next vehicle, up from 29% in 2019. The survey also found that the main factors influencing consumers’ decision to buy an EV are lower fuel and maintenance costs, availability of charging stations, driving range, and vehicle performance. Moreover, the Covid-19 pandemic has also accelerated the shift to EVs, as more people opt for personal mobility over public transportation, and as more people work from home and reduce their daily commute.
Autonomous Vehicles Will Become More Advanced and Accessible
Autonomous vehicles (AVs) are another major trend that will transform the automotive industry in 2024. AVs are vehicles that can drive themselves without human intervention, using sensors, cameras, radar, lidar, and artificial intelligence. AVs have the potential to improve road safety, reduce traffic congestion, increase mobility and convenience, and create new business opportunities.
In 2024, AVs will become more advanced and accessible, as more automakers, tech companies, and startups develop and test their AV technologies, and as more governments and regulators provide guidance and standards for AV deployment. According to a report by Allied Market Research, the global AV market will reach $556.67 billion by 2026, growing at a compound annual growth rate of 39.47% from 2019 to 2026.
One of the main drivers of AV advancement and accessibility in 2024 will be the innovation and collaboration among various players in the AV ecosystem, such as automakers, tech companies, startups, suppliers, and service providers. For example, Waymo, a subsidiary of Alphabet and a leader in AV technology, will expand its Waymo One and Waymo Via services in 2024, offering fully driverless rides and deliveries to more customers in more locations. Waymo will also partner with more automakers, such as Volvo, Jaguar, and Renault-Nissan-Mitsubishi, to integrate its AV technology into their vehicles. Other players, such as Cruise, Argo AI, Zoox, and Aurora, will also launch and scale their AV services and products in 2024, competing and cooperating with Waymo and each other.
Another driver of AV advancement and accessibility in 2024 will be the support and guidance from governments and regulators, who will provide a clear and consistent framework and standards for AV deployment and operation. For example, the US Department of Transportation will issue its fourth iteration of the Automated Vehicles Comprehensive Plan in 2024, which will outline the federal government’s vision, goals, and actions for AV development and integration. The plan will also address key issues and challenges, such as safety, cybersecurity, privacy, ethics, liability, and consumer education. Similarly, the European Commission will adopt its Coordinated Plan on Artificial Intelligence in 2024, which will include specific measures and recommendations for AV development and deployment in the EU.
A third driver of AV advancement and accessibility in 2024 will be the changing consumer preferences and behavior, as more people become familiar and comfortable with AVs, and as more people seek new and convenient mobility options. According to a survey by Capgemini, 59% of global consumers are willing to use an AV in 2024, up from 30% in 2018. The survey also found that the main factors influencing consumers’ willingness to use an AV are safety, convenience, cost, and environmental impact. Moreover, the Covid-19 pandemic has also increased the demand for AVs, as more people prefer contactless and personalized mobility services, such as driverless rides and deliveries.
Connected Vehicles Will Enhance the Driving Experience and Enable New Services
Connected vehicles (CVs) are another major trend that will transform the automotive industry in 2024. CVs are vehicles that can communicate with other vehicles, infrastructure, devices, and networks, using wireless technologies, such as cellular, Wi-Fi, Bluetooth, and satellite. CVs can provide various benefits, such as improved safety, efficiency, comfort, and entertainment, as well as enable new services, such as smart parking, traffic management, and infotainment.
In 2024, CVs will enhance the driving experience and enable new services, as more vehicles become equipped with advanced connectivity features, such as 5G, V2X, and cloud computing, and as more ecosystems and platforms emerge to support and leverage CV data and capabilities. According to a report by MarketsandMarkets, the global CV market will reach $212.7 billion by 2027, growing at a compound annual growth rate of 17.1% from 2020 to 2027.
One of the main drivers of CV enhancement and enablement in 2024 will be the adoption and deployment of 5G technology, which will provide faster, more reliable, and more secure connectivity for CVs. 5G will enable CVs to support high-bandwidth, low-latency, and massive-scale applications, such as real-time video streaming, remote driving, and platooning. For example, Verizon, a leading telecom company, will launch its 5G Ultra Wideband network in 60 cities across the US in 2024, offering speeds up to 10 Gbps and latency as low as 5 milliseconds. Verizon will also partner with more automakers, such as Ford, Honda, and Toyota, to integrate its 5G technology into their vehicles.
Another driver of CV enhancement and enablement in 2024 will be the development and implementation of V2X technology, which will enable CVs to communicate with other vehicles, infrastructure, devices, and networks, using various wireless protocols, such as cellular, Wi-Fi, and dedicated short-range communications (DSRC). V2X will enable CVs to exchange information and coordinate actions, such as collision avoidance, traffic signal optimization, and emergency response. For example, the US Department of Transportation will deploy its Connected Vehicle Pilot Program in 2024, which will involve installing V2X devices and applications in more than 20,000 vehicles and 500 infrastructure units in three locations: New York City, Tampa, and Wyoming. The program will demonstrate the benefits and challenges of V2X technology for safety, mobility, and environment.
